Logo Courtesy of KPMG

Susan Angele and Annalisa Barrett Look at the Current State of Gender Diversity on Corporate Boards

Originally Published by KPMG

The State of Board Gender Diversity

Susan Angele and Annalisa Barrett look at the current state of gender diversity on corporate boards.

As boards seek to improve their effectiveness and consider how best to carry out their oversight role amid rapid change and shifting expectations, diversity—of skills, background, and experience—must be top of mind. Institutional investors and other stakeholders, including employees and customers, continue to focus on board composition by considering whether the board includes the right mix of skills and experience to support the company’s strategy as well as how the board considers diversity in assessing director candidates.

While gender is only one of the many facets of diversity, the underrepresentation of women on corporate boards remains a key area of focus for investors, proxy advisors, and regulators. Here, we look at the current state of gender diversity on corporate boards, efforts to accelerate the pace of progress, institutional investor and proxy advisor views, and recommendations for boards to consider.

The slow pace of progress in boardroom diversity in the United States is well documented. Currently, fewer than one in five directors serving on the boards of US public companies are female. The percentage of women on Russell 3000 boards was 19.3 percent at the end of the first quarter of 2019, according to Equilar’s Q1 2019 Gender Diversity Index. That compares with 17.6 percent as of midyear 2018, 15.7 percent in 2017, and 12.9 percent in 2014, based on Equilar’s Board Composition and Recruiting Trends report. Among the large companies in the S&P 500 Index, which tend to have more diverse boards, the percentage of women directors has also increased gradually, to 24 percent in 2018, up from 22 percent in 2017, and 18 percent in 2013, according to Spencer Stuart’s 2018 US Board Index report. July 2019 marked the first time all S&P 500 companies have at least one female director on their boards.

Susan M. Angele

Susan M. Angele

Senior Advisor, Board Leadership Center, KPMG US

Annalisa Barrett

Annalisa Barrett

Senior Advisor, Board Leadership Center, KPMG US

Download PDF

The state of board gender diversity globally and the evolving US landscape

A look at gender diversity on boards, efforts to accelerate the pace of progress, investor and proxy advisor views, and recommendations for boards.

Leave a Comment

Your email address will not be published. Required fields are marked *

*

Latest News

New York Police department NYPD aarrest quota collars for dollars discrimination lawsuit Black Latino officers Pierre Maximilien

‘Collars for Dollars,’ NYPD Snagged in Discrimination Suit which Targeted Blacks and Latinos

“Collars for dollars” was a common practice among the Transit District 34 officers of the New York Police Department (NYPD). The practice has now resulted in a lawsuit, according to the New York Daily News. Five police officers, now-retired Pierre Maximilien, Sgt. Edwin Raymond and three other officers reportedly filed…

Wells Fargo Advisors Offers Zero Commission Investing Opportunity

Originally published on newsroom.wf.com. Wells Fargo Advisors today announced $0 trades on the WellsTrade® self-directed trading platform for stocks and exchange traded funds (ETFs). “WellsTrade offers investors an online solution to make independent investment decisions. We know do-it-yourself trading is one of several ways investors manage their money,” said Jim Hays, president of…

Mastercard and Doconomy Extend Collaboration to Deliver a More Sustainable Future

Originally published on Mastercard.com. S&P Global Joins Effort to Power Global Platform Available to All Issuers Further Support Provided by Mastercard Investment in Doconomy Madrid COP25, December 10, 2019 – Doconomy and Mastercard today extended their joint effort to combat climate change. Moving beyond previously announced programs, this new arrangement brings the ability…

As Change Accelerates, Insurers Need Profound Transformation and the Right Talent, Reveals EY Insurance Outlook 2020

Originally posted on EY.com Declining interest rates, changing customer expectations and shifting demographics are defining the future of insurance Insurers must strike the right balance between achieving operational excellence and investing in technology-led innovation As insurance industry growth remains stagnant for another year due to low interest rates, the shifts…